Harris Corp.

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HRS : NYSE : Electronic Technology
$158.82 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 727400.0
03/20/18 - 4:01 PM ET

Financial Analysis

HARRIS CORP's gross profit margin for the second quarter of its fiscal year 2018 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.16% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY18 Q2 FY17
Net Sales ($mil)1535.01449.0
EBITDA ($mil)333.0359.0
EBIT ($mil)272.0290.0
Net Income ($mil)139.0177.0

Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)422.0361.0
Total Assets ($mil)9856.011618.0
Total Debt ($mil)3919.04400.0
Equity ($mil)2994.03157.0

Profitability Q2 FY18 Q2 FY17
Gross Profit Margin38.8941.27
EBITDA Margin21.6924.77
Operating Margin17.7220.01
Sales Turnover0.610.51
Return on Assets5.235.72
Return on Equity21.2419.29
Debt Q2 FY18 Q2 FY17
Current Ratio1.221.57
Interest Expense42.044.0
Interest Coverage6.486.59

Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)118.58124.28
Div / share0.570.53
Book value / share25.2525.4
Institutional Own % n/a n/a
Avg Daily Volume735743.0620646.0


BUY. The current P/E ratio indicates a discount compared to an average of 30.84 for the Aerospace & Defense industry and a premium compared to the S&P 500 average of 25.66. To use another comparison, its price-to-book ratio of 6.26 indicates a significant premium versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 159.91. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HARRIS CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HRS 30.48 Peers 30.84   HRS 28.61 Peers 18.75

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HRS is trading at a valuation on par with its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HRS is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HRS 20.28 Peers 21.89   HRS 1.15 Peers 2.62

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HRS is trading at a premium to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HRS trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HRS 6.26 Peers 159.91   HRS 7.01 Peers 12.07

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HRS is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HRS is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HRS 3.14 Peers 2.15   HRS 0.45 Peers 9.53

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HRS is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HRS significantly trails its peers on the basis of sales growth



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